Important Notice: This proposal is being sponsored by Wintermute Governance’s DYDX proposal/voting power on behalf of the dYdX Operations Trust.

In reference to this discussion: https://dydx.forum/t/dydx-operations-subdao-v2/274

Summary:

On behalf of the dYdX Operations Trust (“DOT”), Trustees Joanna and Callen are requesting $6.6M of funding from the dYdX community treasury to be transferred to the DOT’s multi-sig (0xa8541f948411b3F95d9e89e8D339a56A9ed3D00b) to fund operations of the Operations subDAO for an additional 18-month term (“DOT 2.0”).

Description:

As discussed in the forum post here, DOT 2.0 will be responsible for:

• Recruiting an Operations Lead, a Technical Project Lead, and a Site Reliability Engineer to scale the Ops subDAO and to provide technical support to prepare the dYdX DAO for the future.
• Identifying an indexer operator and contribute to deploying an indexer in the potential future version of the dYdX protocol.
• Contribute to deploying open-source software and the running of a version of the iOS app, Android app, and website (browser) front-ends for the potential future version of the dYdX protocol.
• Engage a third-party auditor to assess DOT’s finances and performance, as well as increase the number of trustees on DOT’s multisig.
• The remaining funds at the end of the DOT 2.0 mandate will be sent to a community-controlled wallet at the discretion of the dYdX community.

For a full breakdown of the proposal’s mandate please see the forum post.

Funding Request:

The funding request of $6.6M and its conversion from DYDX tokens will be detailed in the subsequent DIP if this Snapshot were to pass.

The funding request will cover the operations and administrative needs of the dYdX Operations subDAO as described in the proposal for 18 months.

The DOT currently has $87,077.50 USDC remaining. After the expiration of the DOT 1.0 term on June 19, 2023, we are proposing to roll over any remaining budget to DOT 2.0.

Trustees:

Reverie Reserves, LLC, and George Beall have decided that they will no longer be involved in the DOT as a trustee and the enforcer, respectively, after the expiration of the current term on June 19, 2023. As a result, we are actively looking for new trustees and a new enforcer.

In accordance with the Trust Instrument, we plan to include the replacement of Reverie Reserves, LLC, and George Beall as action items during the on-chain vote for DOT 2.0. If we do not find suitable replacements prior to the on-chain voting period, an additional Snapshot vote will be required.

We recognize that as funding increases, adding additional security measures becomes increasingly important. As such, we are looking to increase the number of trustees from 3 to 5. If the subsequent on-chain vote for this proposal is successful, we will amend the Trust Instrument to reflect the changes.

As it stands, the Trustees are:

• Joanna Pope
• Callen Van Den Elst
• TBD
• TBD
• TBD

And the Enforcer:

• TBD

Voting options:

Yes:

• Transfer $6.6M of DYDX from the Community Treasury to the DOT multisig.
• Remove Reverie Reserves, LLC, and George Beall as a trustee and the enforcer, respectively, at the end of the DOT 1.0 term on June 19th.
• Appoint 3 new Trustees and 1 Enforcer to the dYdX Operations Trust (TBD)
• Amend and restate the trust instrument, as necessary, to reflect the DOT 2.0 mandate.

No:

• Reject this proposal.

Next Steps:

If approved, a DIP will be submitted to:

• Transfer $6.6M of DYDX from the Community Treasury to the DOT multisig. The amount will be determined at the time of the DIP submission based on price.
• Remove Reverie Reserves, LLC, and George Beall from the dYdX Operations Trust after the DOT 1.0 term expires on June 19, 2023.
• Appoint 3 new Trustees and 1 Enforcer to the dYdX Operations Trust; to be detailed in the DIP.
• Amend and restate the trust instrument, as necessary, to reflect the DOT 2.0 mandate.